tv Lou Dobbs Tonight FOX Business February 20, 2013 7:00pm-8:00pm EST
♪ the u.s. postal service will stop at nothing to raise revenue including lodging and new clothing line. but would you buy anything from the ? here is what you're tweeting me. it sounds like a silly way to raise cash. and susan rice may be for halloween. we also asked the question on gerriwillis.com. 4 percent said yes, 96 percent said, no way. forget that. here are some of your e-mails. jerry, please don't recommend everybody moved to texas. there are too many people moving here now. virginia says she knows why. you mentioned that we should all the taxes. has fox thought of moving their operations to texas? an interesting idea. it began this time she says to send a message to new york. continued to edge -- time to leave the rotten apple. while. thanks for that.
and finally tonight, recent reports link a string of cyber attacks to the chinese military. now the white house is fighting back in no way. reportedly considering fines against china or any country guilty of cyber attacks. how exactly do you find china? what are we going to say we now only 0u1000000000000 instead of one. two? and a programming note. coming up in about an hour right here neil cavuto will sit down with the author of the report linking the chinese army was cyber attacks. the vice-president tonight at eight and 11:00 p.m. eastern. that is it for tonight on "the willis report." thank you for joining yes. a great night and be right back here tomorrow. ♪ lou: good evening, everybody. we are glad you could be with us tonight. we are now eight days away from sequestration. the $85 billion arbitrary
spending cuts that the president predicts will cause basically armageddon. the white house today focused on even more spending. the obama administration releasing the details of a plan to pump 50 billion more tax dollars into a stimulus-like tag -- package aimed at infrastructure as the president's continues blaming the republican party for the sequestered spin its alleged consequences. white house press secretary jay carney actually mocks congress today for being on recess with a deadline looming, telling republicans there is a very simple solution to this sequestration problem. simply capitulate to the president and the democratic party. >> i don't want to make predictions. i would note that congress is up this week, which says something, i suppose.
but the fact of the matter is the march 1st deadline is looming. congress has an option, a very simple option, which is to take up the proposals put forth by senate democrats and house democrats. lou: being very helpful to the republican leaders. the problem with this statement is, there is no democratic proposal. the president has not picked up the phone to even begin to initiate or negotiate a solution to a problem of his own creation and his allies in the democratic controlled senate have not taken up any sequestered replacement bills from the house of representatives. they have sent over to. writing in the "wall street journal" op-ed today saying, having first proposed and demanded the sequester, it would make sense that the president lead the effort to replace it. unfortunately, he has put forth no detailed plan that can pass congress and the senate
controlled by his democratic allies has not even voted on the solution. the house, as we reported here, numerous occasions, has passed to sequester replace the bills' only to see both are simply ignored by the upper chamber. meanwhile, an outgoing defense secretary leon panetta today told congress that the vast majority of 800,000 civilian defense department employees are subjects to furlough if the sequester were to take effect. pentagon officials, however, confirm that those furloughs would not begin until april at the earliest and that furloughed employees would be asked to miss one day of work per week for 22 weeks. the reality of sequestration is that it represents a very small portion of overall government spending, no matter how dramatic or how grim the president projects the consequences. fox news chief political correspondent carl cameron has
our report. >> these cuts are not smart, not fair. >> six business days and counting to $85 billion in across-the-board federal spending reductions. defense bases in 8 percent cut and other agencies reduce spending five to 6%. as part of the over three and half trillion dollar federal budget for this year alone the $85 billion sequester cuts amount to a tiny slice. only just under two and a half%. government spending is average 20% of annual u.s. economic activity. even after the sequester cuts it will be 22% this year, 10 percent higher than the average for the last seven decades. government spending is still projected to rise substantially for the next in years. even if the sequester does occur, spending will continue to grow, but only by a fractionally lower amount. whether or not to sequester cuts occur this year, the deficit will still be over 845 billion come easily pushing the national debt over 17 trillion. president obama who first proposed the sequester and his party are trying to blame the
gop for dire economic consequences and particularly to the military. in 2009 he proposed spending $14 billion less than what the military is currently budgeted for. congress will be impacted by the cuts, but not members salaries. according to allied house study staffers and operating expenses on the hill to be trimmed by more than 130 million. federal employees face furloughs. about half of the 800,000 civilian military workers be forced to take up to 22 days off over the next six months. before the original january for sequester deadline lawmakers agree to raise taxes $650 billion to find further savings by the new deadline march 1st. republicans assume the additional savings would come from spending cuts. >> now is time to get serious about reducing washington's out of control spending. >> with democrats demanding more tax hikes, talks are stalled and there is no jump-start in sight. the january tax increase has republicans determined to get serious spending cuts now. many are beginning to think the sequester may be the only way to
do it, but experts say this serious problem is that agency or even defense spending but medicare, medicaid, social security, health care, and the sequester has next to no impact on them. lou: fox news chief political correspondent. thank you. of course, former senator alan simpson saying that president obama would be a failed presidency if he does not deal with those entitlement programs that were just noted. our first guest tonight says the sequester is a bad idea whose time has come. even if it kicks in the western hemisphere will not collapse. joining us now, former director of the congressional budget office, president of the american action forum. good to have you with us. the president, i think the speaker proposed it rather interestingly and eloquently. the president needs to clean up the mess he made. what do you think? >> it's certainly a matter of historical record that the president proposes across the
board method of cutting spending. think it's also a matter of record that no one likes it. it was designed to be so bad that it would not be used. but if we are not doing the alternative, which is to pick specific programs, especially the ones you mentioned, medicare, medicaid and health care spending, cut those because those are the programs that are the problems. since that is not happening this is what is left. increasingly you're hearing people say, well, fine. this is what we will do. lou: well we will do is really layoff of lot of employees, according to the president. he runs the government, therefore these are his choices. laying off 800,000 employees of the federal government because of a 2 percent change and other spending. that is, frankly, and that's. i mean, that is just -- and unconscionable. >> there are a couple things about that. or not going to lay off 800,000 people. there will be 800,000 people who will be affected by the sequestered, most will end up having to take some unpaid days off, maybe a ddy week for a
couple of months. that doesn't mean the pentagon will grind to a halt. managers will juggle work schedules. that goes on all across america. a second aspect of that is the reason we get these kinds of irrational cuts is the pentagon does not have the flexibility to move money from one place to another which is a congressional decision. they tie the hands of the pentagon and other agencies and say, look, you can't move the money. every cat gets at the same amount no matter what it is, personnel, so they made this better know it will lie in it. lou: well, they made a bet in 800,000 federal employees will be lying in it. as usual, the consequences really fall upon those who are not -- well, anything but an elected official in this government. this is not, it seems to me, and easy task for the president to try to deny recorded history that this sequester is not his idea, that it did not -- >> a skilled politician.
that is what they do. lou: you know, i do understand that. i don't understand what has happened to the people pet -- the lap dog press that permits it, whether it's a democrat or republican, the president or congress. they are to be held accountable for malfeasance, misfeasance, and other, just complete irrational behavior. this seems to be one of the historic examples. >> and i mean, this is one where siddeley his fingerprints are all over it. now i guess what really bothers me the most is there is a concerted effort to scare the american people to death. as you said, i don't think the western hemisphere will collapse. this is $85 billion in net of three and half trillion dollar budget in the $16 trillion economy. i would be hard-pressed to explain how cutting 85 billion -- think of it as taking 85 billion out of your allowance of $3,800. eighty-five bucks out. as not going to end things. lou: percentages are, perhaps,
the easiest way to comprehend this. 2 percent, you know, is not that significant. on the other hand, it is easy to recall that rat poison is mostly of meal in most cases with 2% poison in it. 2% can be deadly and destructive in some cases determined. go ahead. >> no one should argue this is a good idea. this is, as i was quoted, a bad idea whose time has come because the worse idea is to not deal with the spending. that is the problem. and at least they are agreeing that there not going to do nothing. so it is either do real spending cuts that are real choices and really passed the senate, which we have not seen passed the house. with this. lou: at some point, and i know that you are doing your level best to try to bring rationality into the nation.
>> not my fault. lou: i understand, and i sincerely respect that. but on the other hand, if i may, one of the things that the republicans and conservatives have stepped into is a trap. in that is, if they continue to harp on the budget, what must be done, which is never done, and therefore there being dismissed because they are the messengers of such an articulation. at some point -- in this may be that point -- is in the time to let the president have the consequence is that the orders up through his own initiative, in this case the sequestered. if you are correct then he is going to have a political disaster on his hands that will not be of terrific pain to too many people assuming that what is likely doing is touching the lives of 800,000 people. the republicans to move on to the idea that what is not
required is comprehensive immigration reform or gun control or tax reform. what is required is reforming the entire federal government and the way to party's mismanagement. >> said think your on to something. i think increasingly the house of representatives in particular is recognizing that you cannot hold pieces of the government hostage and forced the president to do the right thing. you cannot save president obama from himself. he is elected and has control of the senate. then make their choices and then let the voters decide. lou: terrific. it sounds like a constitutional republic to me. good to have you with us. >> thank you. lou: time for tonight question. will the national liberal media hold president obama accountable for his failure to lead and resolve his sequestered? go to facebook to cast your vote. gasoline prices still rising. we will tell you why in tonight's "chalk talk."
the stock market's selling off. gold and commodities plummeting. harvey eisen with his insight here next. ♪ with the spark miles card from capital one, bjorn earns unlimited rewas for his small business take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button? all your imptant legal matters in just minutes. protect youramily... and launch your dreams. at legalzoom.com we put the law on your side.
♪ lou: home starts unexpectedly fell. boulder -- builder confidence dipping. the chairman and ceo will be here to talk about this market and the direction the latest economic numbers as well. but let's turn to what happened today, and it was not present to my pleasant on wall street where stocks went sharply lower, the dow falling 108 points in the s&p down 19, nasdaq down 49. volume on the big board picking up in the face of adversity. -- the minutes of the last meeting of the fed showing some
division over the aggressive bond buying program if you call 85 billion a month aggressive. some members want the fed to tighten those easy money policies, and that revelation shocked some investors and certainly the stock and commodity markets react in the final hour and half of trading. gold down $26. the biggest one day decline since mid december. gold selling a $15.707, the look -- the lowest since the end of july. down $71 of the past five days. crude oil down again, down $2.20. the worst since the 20th of november, the drop in gold prices sending gold mining stocks lower as well. gold reserve newmont mining royal gold all down more than 4% on the day. the bond market found little move. the yield on the ten year treasury actually clicking down a bit. my next guest says there is no
surprise for the fed's trouble in today. the slowing of asset purchases will and as soon as he would like certainly. joining us now with his outlook, chairman and ceo of bedford of divisors. good to have you here. >> uses a reaction to a market that unexpected unexpectedly sold off? >> i have been talking about this. i mean, the oldest thing in the book is the fed has the possible. they have got to take it away. the only question is when. just remember one thing. 19371937. lou: that was the year. >> most of the damage that -- most of the damage of the depression had been recovered. it went over the cliff. lou: this sounds a little like you are suggesting. this may be 1937 all over again. if the fed does act a slowdown
those asset purchases. what he knows, over his dead body. history will be repeated. we're going to see continued to liberal, i think it may be a very tight word for it, liberal monetary policy. where are you? >> in my world i have said deal, unfortunately, with reality because it involves my money. and telling you that all i'm concerned about it is not what these baboons say but what they do. right now they will not tighten. lou: is that helpful to the accumulation of more of the
stuff you're so concerned about? >> let me make it simple. the good news is in the short term the nonsense continues. in the longer term the inevitable outcome is going to be incredibly bad. no one worries about the longer term anymore. the stock market is up 130%. are you kidding me? lou: it think he would be worried -- worthy of something besides those so if you're making more than double your money. all put you down as and no. the truth this gold sold off. we're watching quite run. we have people saying, gosh, if this thing breaks through various levels including some that it has already broken through will bode poorly for the market. >> gold has been up 12 years. the last time gold was up for that amount of time it went down
. gold is corrected. these things don't go in a straight line. you can get a chance to buy some cheaper. lou: do you perceive the greatest threat right now to the macro economy to be deflationary or inflation? >> the biggest risk is always inflation. always inflation. the problem is the mask it by talking about deflationary which never happens. so what you have no is because of this miniscule growth in the economy and no inflation the fed has completed cover to continue this madness. lou: as always, great to have the year. lou: we will have the results later in the broadcast. coming right up gasoline prices higher for up 304th day in
climb since 2005, the highest prices on record for this time of year up $0.47. you would think that that would be big news. appears that there are all sorts of ways that the mainstream liberal media is compliant and implicit with this administration. they are committed, apparently, to shielding president obama from any negative news, any possible cause our relationship link between, welcome a policy and consequences. under the bush administration gasoline prices also surged dramatically before reaching then $2.56 per gallon. back in 2008. in that previous month in 2008 nbc news, and that's why we love these. and i used to seeing these three little letters sent to. anyway, nbc devoted eight stories to the bush gasoline
price rise. abc news, world news covered it seven times back in 2008. cbs is in this seven times as well. in the past month nbc's evening broadcast as mention gasoline prices rising just -- well, this is sort a staggering, only worth three mentions here in 2013. abc mentioning it three times. and it the evening news, i don't know what they were thinking, one time. that is a ratio, as we have put our expert calculators to work here, 22-7, little difference between the way they reacted to the bush administration and to the obama administration and hal gas prices are now under the obama administration. just think how differently democrats react. back in 2008 then house speaker
nancy pelosi was on television saying, the price of oil is attributed to the two oil man in the white house. today not a word from policy who is too busy arguing that too much government spending is not really a spending problem. what is driving these higher prices? in part, your we go, refinery maintenance under way is the company's switch to summer blends of gasoline. investor speculation. you always have to be upset about speculation. higher crude oil prices and, of course, rising tensions in the middle east, syria, libya, yemen. we will take all of this up with the executive editor of the oil price information service here tonight. and i will make him tell us when we can get a break at the pump. stay with us. it destroyed, another $14 billion in the whole. could it be that an obama bailout loans? the "a-team" response.
♪ lou: an alarming new report warning that the cost of federal pensions is simply exploding. according to the federal times, the unfunded liability of the federal government's pension systems surged in fiscal 2011 to 761 in a half billion dollars, an increase of 139 billion in one-year. unfunded. guess who is on the hunt? turning back to a rising gasoline prices, next guest says prices at the pump are rising earlier than usual.
drivers could be paying more at easter that they are on memorial day. we hope so. joining us, good to have you with us. executive editor of the oil price information service. you think that this thing is going to peak in the spring? >> that is kind of my forecast. the more that we are. that was about april 16th 17th. this year we are running a couple of weeks ahead of schedule, so i'm hoping that we're going to be somewhere around april 10th or so. and probably in that same area, $3.93. lou: we saw today refiners did hit hard. we saw oil backing off. is this a sign of good things to come for the consumer? >> i think it is. it's going to take its time to make its way downstream, but there are companies that gauge whether the market is bullish or
bearish. the bullish percentages are reaching those levels where, okay, it's time to take some that's off the table. we could see the futures prices which will in turn up the wholesale prices and then turned property sale prices. lou: we want teachers to expire. that is all playing into a. bottom-line, as we go forward, what is driving these prices higher. i talked to bill o'reilly. usually every week about the way things are going. he goes crazy because prices go up. i never hear from them when they're going down. >> right to. lou: understandably. these prices go up, people get hurt. this is a bigger chunk of change >> absolutely. and there is also taxes that are involved which is a hidden cost in the gas price. retail gasoline prices. you know, when you come across the tunnel or come through the tunnels, it's not like the gas is magically different. is the same gasoline used here in new york. our taxes are so much cheaper in
new jersey and gasoline. everything else is a different story. lou: you cross into new york in a looking at the highest state gasoline taxes in the country. >> just about. it's in the top apostates. california is another one. connecticut is that there is well. lou: do we still include california? >> i think we should. one of the great 56 the we have. lou: what is your expectation? going to see a nice, smooth transition to summer blend? going to see consumers get a break at the pump? >> a lot of times this time of year comes all around the office. no, my god. lou: are not going to have enough gasoline. demand will outstrip supply. there is going to be some major problem when we switch over to the gasoline. usually there are few pockets here and there. terminals transfer over and it does not quite happen right. for the most part we get through it relatively unscathed. and that is when everything kind of falls apart and we finally get that break will looking for.
lou: and now we're wondering whether or not wish to include new york as well. gun-control laws. getting complicated. thank you so much for being with us. coats said loudobbs.com to get the list are facebook page, you tell me. don't forget to go to our facebook page and vote in tonight's poll. up next, angry liberal. is he really so angry? is he just messed up? and alec baldwin facing legal consequences for one of his tirades. we will take up weather and that he is a heater next. ♪ [ engine revving ] ♪ [ malennouncer ] every car we build
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this -- shot guns for self-defense, which is in and of itself a very good idea. >> did a double barrel shotgun. have the shells. fire to blasts outside the house. i promise you, whoever is coming in -- you don't need an ar-15. it's harder to name. it's harder to use the command, in fact, you don't need 30 rounds to protect yourself. by a shotgun. lou: i'm sorry. but the comment, actually, part of it is the right idea. a shotgun is a great personal the fence and on defense weapon. but certainly ought considering that can control at the top of the president's second term agenda. probably is not too thrilled about boosting any kind of weapon. detroit moving closer to a state takeover. it will take that up with the "a-team". after this date appointed review team found detroit is in a
financial emergency. this has been clear to everyone that has been paying any attention. they say there is no way to get them out of it. republican governor rick snyder now has 30 days to decide whether detroit requires an emergency financial manager. no, let the folks in government keep going. they would expect that manager to ultimately decide that the city's only option is to let go bankrupt. detroit has a budget deficit of 327 million, running deficits since 2005. eight years. now think they have an emergency. that is the way it works in government land. critics question whether columbia receive made the right choice and hiring george papandreou, the former socialist prime minister of greece. believe it or not, the former prime minister is teaching a class at columbia. the ivy league school, columbia, how to govern during a financial
crisis. added that workout for everybody? papandreou was forced out when greece was racked by violence street protests against his management of a financial crisis. the country on the verge of default. many were calling for the country to exit the eurozone. they're european union built greece out. i should say it that way. bad news for alec baldwin also known as an angry liberal. the 54-year-old actor is being investigated for a hate crime over recent altercation with a new york post reporter and photographer. baldwin, according to reports, fired off racial slur of the photographer who is african-american. then he threatened to choke the reporter. the post reported it to the new york police department, a recording of the incident where he denies all allegations. up next, instead of making any effort to fix the limning sequester, you know, picking of the phone, calling the speaker,
lou: north korea releasing a new propaganda videos showing american soldiers and president obama burning in the flames of a nuclear blast. the propaganda video comes two weeks after north korea posted another bizarre dream sequence video of a missile blowing up new york city, dreaming in north korea. despite the low-budget nature of the propaganda efforts, north korea is no doubt spending hundreds of millions of dollars on missile testing, the latest
perform just last week. senator marco rubio not afraid to get a sip of water during their public response to the state of the union, released this picture taking a water break with the israeli prime minister benjamin netanyahu today. also cashing in on the incident, his reclaim america pact, boosted 150,000 to grant in just one week selling water bottles. now, that is taking advantage of a moment if i have never seen it. our online audience had quite a bit to say about the house speaker is op-ed in the wall street journal today. effectively telling the president to clean up the sequester mess that he created. wrote to say republicans tried twice to take sequester off the table. obama threatened to veto it. this is all on obama's said. well, you would think so. but you leave out the impact of a complaint media.
charles messier had this to say. jet blue and obama's do. in hot water over their cue the program to bounce the gop ended is backfiring. we will see about that. all right. it is about time the speaker grew some -- well, and overeat. this is obama's mess and you can't keep blaming others for it. enough. well, i think i can share that. mark me down as agreed. joining me now, the "a-team," pulitzer prize-winning columnist , fox news contributor, a democratic consultant. washington examiner chief political correspondent. the speaker with his voice in the "wall street journal" op-ed. i mean, he related up. it is on obama. it is his mess. he needs to figure out how to fix it instead of just caterwauling with eight local news anchors and television news anchors. what do you think?
>> well, you know, the speaker did more than just blame barack obama for the sequestered. he also completely adopted the democratic rhetoric about the sequestered. he said that the sequester would threaten u.s. national security and thousands of jobs. that is a quote. which leads you to the question, republicans support the sequester. they will make sure that it happens unless -- very unlikely event that the democrats would come up with an entitlement spending. it would ttreaten national security and threaten thousands of jobs, why are republicans supporting it? you would think that republicans would argue that a sequester is a relatively small budget cuts need to make a start on bringing runaway federal spending under control, and that's why it's necessary. instead, he sounds just like the president. lou: of hurtful hank check off. nothing -- byron is hurting the speaker with that kind of language. >> i'm sure the speaker is
terribly upset with them. the facts are, this is all about 2014 and has nothing to do with national policy or the concern for the american people for long-term deficit issues and not pay for them. this is all but he takes the house. obama is trying to box the speaker in, and he took the bait. that's not so good. lou: to you agree? >> absolutely. yet the secretary of state talking about how nuclear preparedness is going to suffer because of the cuts to is pathetically small budget anyway and you have the same line from the agenda peloton up. it is clear now, we have a third. the last time i checked he is republican, is in the? lou: last time i checked kerrey was a man with a triple digit iq. how smart is it to offend the people who will determine whether or not your budget is appropriate? at some point these folks have got to understand this is not a sandlot and they're playing games. continues. i don't for a life of me understand why he puts up with
any of the nonsense. the heads of the appropriation committees don't just say, you know, i have had a bellyful of your attitude. go fix it. now, let's go to the central point that we made. that is that the speaker said, i believe correct focus that this is president obama's deal and he better fix it and cut the nonsense because is not going to play. i happen to think he's right. do you agree? >> certainly this does start with president obama. he laid that out in some detail about how the budget talks with the debt ceiling talks fell apart in 2011. obama at the last minute came up with a sequestered idea. think that's all pretty much a factor. the problem is, both sides and i believe, are making their peace with the sequestered. the republicans because the sequester is in law. it will happen if they just don't do anything. these cuts will happen. and democrats believe that they can employ the washington monument strategy and show that the government will virtually
shut down if these talks take effect. and when politically. lou: and win politically. you know, not sure i know how they get there. this is now on obama's said. hey, this is no matter what, we have recorded evidence of the president saying, it is his deal , that he -- well, let's listen to the president articulate his promise to the american people. >> already some in congress are trying to undo these automatic spending cuts. my message to them is simple. no. i will veto any effort to get rid of those automatic spending cuts, domestic and defense spending. there will be no easy of france on this one. lou: they seem to be easy off ramps. these folks get themselves into it. we will be back with the "a-team" and answer -- will have
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lou: our poll is nothing like bill o'reilly or a lot of others lou: our poll is nothing like that of bill o'reilly or others. in our questioning about leading the process to the sequestration, 100% of you said absolutely not. no, nothing. thank you for voting in the . i love their response. back with the "a-team". i love the fact that this audience is not fooled by one bit. not even a margin of nonsense there. by one-way. and this president shouldn't be held accountable for anything,
that is what some of them are saying. >> i mean, if you cannot get straight answers, long after it matters politically, he would have the big story of the day, we could watch the president take a swing on the golf course. there were ways that could be gotten away with as well. lou: is this because they don't understand again? they do not have the intellect or imagination or the talent to come up with a counterstrategy? what in the world is the reason that the republican party in its entirety has been beaten twice and presidential election is being duped daily by this administration president who is turning out to be quite an interesting politician? >> certainly when they were running up to the fiscal cliff
negotiations, meeting in november and december of last year, republicans were saying that, well, we are going to do the best that we can. but we lost the election. they lost the white house, they lost the senate. lou: but what are they going to do here? what is the deal? sit around and whine? >> since it is already the law, -- lou: i like the way you said that, already the law, look out mr. president. >> it's like the tax increases were. even the republicans can do that one. lou: do you think even the republicans can do this? i am personally not convinced. >> the issue is somewhat larger. why are they going to let this happen without the president saying that you brought this on us,